Nearly one million people in the UK are set to take out a loan in order to buy a second hand car this year, it has been claimed.
However, Sainsbury’s Bank has warned that many could end up paying too much – by both not shopping around for the best interest rate and also by refusing to haggle over the price of the vehicle they want.
According to a spokesman for the bank, many people are reluctant to haggle over a price and will simply pay what is asked.
“Our findings reveal that over half of people who are intending to buy a second-hand car in the next six months state they do not plan to haggle or will only haggle slightly”, he said.
At the same time, a significant number of people do not look around for the best interest rate and so may end up paying far more than they need to on their loan, the company claims.
In related loan news, the Bank of England’s monetary policy committee yesterday increased the base rate of interest to 5.5 per cent.
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